Hills-GVC to receive second Sportingbet bid extension
William Hill and GVC will ask for extension due to "sheer amount" of due diligence needed ahead of tabling formal "put up or shut up" bid, source close to the negotiations says.
Sportingbet will tomorrow accept William Hill and GVC Holding’s request to extend the 5pm 13 November deadline both parties have been set for their joint bid for the operator, eGaming Review can confirm.
eGR understands William Hill and GVC will ask for extension due to the “sheer amount” of due diligence needed to be carried out ahead of tabling a formal “put up or shut up” bid, a source close to the negotiations has told this publication.
This would mark the second extension for the proposed takeover following Hills and GVC’s original request on 16 October. This deadline extension would also have a lifespan of four weeks, eGR understands.
An improved offer of 61.1p a share is on the table. This comprises 48.9p in cash, a 1.1p dividend declared by Sportingbet and the rest in GVC paper, valuing the group at £408m, or £530m including Sportingbet’s convertible bonds and share options.
Hills is bidding to acquire Sportingbet’s Australian business “ its most “attractive asset” according to the source “ as well as its newly regulated Spanish business where it enjoys considerable market share of in sports betting. GVC Holdings is vying for Sportingbet’s grey markets including its share of South America where it currently operators its own popular Betboo brand.
The two parties saw an initial bid of 52.5p a share rejected last month. The first offer came on 19 September.
In October Sportingbet confirmed that an offer matching the 61.1p a share bid would most likely be unanimously recommended to shareholders by the operator’s board of directors, explaining that the board “Has therefore agreed to work with William Hill and GVC Holdings to facilitate the making of a formal offer…”